Although similar to Fannie’s HomeStyle loans, CHOICERenovation is novel in that it can also be used to renovate and repair properties damaged in a natural disaster, or to fund renovations, such as flood barriers or retaining walls, that might help prevent damage from a natural disaster.

As government agencies focus their attention on the market share of nonbanks, independent mortgage bankers say their business model poses no significant risk to the economy.

Grapevine: A few days ahead of a scheduled bankruptcy auction, New Residential Investment Corp. has swooped in and made a "stalking horse" bid. Meanwhile, a big promotion at Fannie Mae and a record month for Guaranteed Rate.

According to court filings, Wachovia Capital Markets, which served as one of the underwriters and book-runners for the NovaStar deals, provided investors with misleading statements in its SEC registrations and offering documents.